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V0918-21 14 April 2021 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · rendimientos del trabajo

Professional career back pay is taxed in the year it becomes due and may qualify for a 30% reduction

An interim civil servant received professional career back pay in 2020 relating to previous financial years. The DGT determines that this income must be taxed in 2020 and analyses whether the reduction for irregular income applies.

The question raised

Taxation of the aforementioned arrears in Personal Income Tax (IRPF).

The DGT's ruling

The arrears of the professional career supplement constitute earned income that must be attributed to the tax period in which they become due, which in this case is 2020. It is possible to apply the 30% reduction if the generation period exceeds two years and no other similar reductions have been applied in the previous five tax periods. For the calculation, the start date is taken as September 10, 2016, and the end date as the administrative recognition in 2020.

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